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Research released early Tuesday argues stablecoins have made their move out of niche applications and into the mainstream of international payments, propelled by fast transactions and perceived security.
That’s according to the “Stablecoin Utility Report” from stablecoin-technology provider BVNK, with research conducted by YouGov among more than 4,600 digital-currency users in 15 countries, including the United States, France, Germany, and the United Kingdom. Artemis, which analyzes blockchain data, also contributed to the effort. BVNK develops financial applications that involve stablecoins.
A demand for faster and more secure money movement among companies and consumers is helping drive the stablecoin trend. Some 39% of respondents reported receiving their pay in stablecoins, with the digital currency accounting for 39% of annual income. That’s while 27% report using the coins to pay for routine transactions.
Results like that could help dispel doubts in the financial world toward the digital currency, the report’s backers argue. “If you’re sitting in London or New York, you might be thinking: when was the last time I paid for something in stablecoins? When did I see a ‘pay with stablecoins’ option on a Web site? The skepticism feels rational,” says Chris Harmise, a co-founder at London-based BVNK, in a statement.
But if stablecoins are heading into the payments mainstream, they will require ever wider acceptance. That’s especially the case as the digital money has evoked demand that is greater than the opportunity to spend, according to the report. The survey indicates 42% of users want to spend crypto on big-ticket purchases, but the proportion that do so is 28%. Results like that could lead to card-based spending, as 71% of respondents indicated they would be open to using a linked debit card.
To be sure, stablecoin stashes have been growing steadily, with half of those holding stablecoins having increased those holdings in the past 12 months, according to the report, with holders tending to be young, living outside the West, and inclined to be entrepreneurial—though evenly split between male and female.
But what frustrates stablecoin holders? The irreversible nature of transactions is the number-one sticking point, cited by 30% of users, according to the survey. That’s followed by too many steps to complete a payment (22%) and the need to select a specific blockchain or stablecoin (20%). Just 10% indicated they didn’t find the process frustrating.
The survey was conducted in September and October last year among persons who either hold crypto or held it in the last 12 months or intend to acquire it in the next 12 months.
